Solving the crisis in Early Stage venture funding with the Dacxi Chain.

There are countless brilliant entrepreneurs and innovators around the world, developing era-defining products that could change the lives of millions. But the vast majority of them will never get beyond the validation stage. Why? Because of a lack of adequate Early-Stage venture funding.

The cost of this lost potential to both people and the planet is incalculable. Yet the solution is obvious; Early-Stage funding must be more easily available to deserving projects, and more investors must be given the opportunity to contribute their funds.

So what’s caused this crowdfunding crisis, and how can we solve it? 

The missing link between entrepreneurs and investors.

Early-Stage funding can also be referred to as funding from Seed Funding to Series A funding. At this phase in a new venture’s lifecycle, a business might need up to $5 million to take it to the next level – but success simply can’t be guaranteed. This means it’s risky. But it also means there’s a major opportunity for hyper-growth in value. If the project succeeds, it can be like finding buried treasure. Just think…what would your life be like right now if you were an Early-Stage investor in Apple or Amazon?

The promise of hyper-growth in value makes the idea of Early-Stage investment an appealing one – and it gets plenty of publicity. So much so, it’s easy to think that there’s cash everywhere for Early Stage ventures. Not so. There are actually only a few places in the world with effective new venture funding systems in place. Places like Silicon Valley, New York City, Shenzhen and Shanghai dominate the innovation playing field. 

In other international centres of innovation – places like Oxford, London, Singapore, Sydney, Rio, and Stockholm – you would expect Early-Stage money to be easily available. In reality, it’s actually extremely difficult to get adequate funding. In these places which are awash with investment capital, only those businesses that have already seen proven success are getting a look-in. 

It’s a classic Catch-22. You can get money, but only if you don’t need it. For entrepreneurs based outside those centres, it’s even worse. For 99% of the world, getting the right amount of Early Stage funding at the right time, from the right investors, is virtually impossible. 

This is the great failure of the present crowdfunding system. Because the truth is, there are just as many great ideas and entrepreneurs in Scotland, Chile, Adelaide, Vietnam, Delhi, Estonia, Uganda, and Turkey as there are in New York or Shanghai. What if a great team in a developing nation could get the same level of funding for their project as someone who happens to live in Silicon Valley? Innovation and productivity all around the world would be transformed.

This is what the Dacxi Chain is doing; transforming Early-Stage funding, by solving crowdfunding’s biggest issues and creating a system that actually works. Both for entrepreneurs, and investors. 

How to fix crowdfunding.

The public (AKA the crowd) is the largest source of speculative capital in the world. But right now, the public quite simply lacks the awareness of exciting new ventures – and the ability to fund them. And millions – even billions – in potentially productive capital is going to waste because of it. 

Cambridge University’s Alternative Investment Centre estimates that annual equity crowdfunded investment is less than $2 billion worldwide. Contrast that to the $1 trillion that IBM believes that tokenized unlisted equities sector could be worth. These two numbers are telling:

  1. the enormous scale of the problem (and the opportunity)
  2. the immense potential of the Dacxi Chain to solve it.

So, what’s wrong with the present equity crowdfunding model?

The Dacxi Chain team believes today’s equity crowdfunding model has many shortcomings yet they all flow from one issue: Investor Scale. Companies do not have the size of investor pools to attract the hot deals which would attract investors. It is a classic platform problem that is especially problematic for new crowdfunding companies or those from smaller countries. 

The challenge for the industry is to be able to connect at least 100 million potential investors who would participate in promising early-stage deals with the deals themselves.

The Dacxi Chain – and tokenization – will change everything.

With the Dacxi Chain, a company’s shares will be tokenized on a blockchain. Investors will then be able to purchase these tokenized shares from platforms in the Dacxi Chain network around the world. Rather than holding a company’s shares, they’ll own tokens that represent ownership. 

New blockchain technology can be used to solve other challenges to deliver global crowdfunding solutions. Also with a global cryptocurrency-based payment system, the Dacxi Chain global crowdfunding network will help entrepreneurs raise more money, more quickly. From the right investors, from anywhere in the world. 

The Dacxi Chain marks the end of the early-stage funding crisis. And the beginning of a thrilling new opportunity for entrepreneurs and investors all over the world.

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